China Ceramics Co. Ltd. (CCLTF)

[bUrRpPPP!]

Added 2500 $1.31...someone sold a market order...thanks!

[Traderfan]

Ok I see the MM did read my posting....

Back to normal bid ask after 2 days. Nice.

[Traderfan]

Anybody know what's the matter with the warrants? 2 days now no trade and the bid is stuck at 1.16. I guess we all know that it's very unlikely that there is no higher bid in there for 2 days. I tried to bid 1.30 yesterday and they never showed it. Strange stuff here.

[lmcat]

Great to see someone else is on top of this and I was pleased with the fast reply to my question.
lmcat

[GorillaGorilla]

CCG INVESTOR RELATIONS were impressive. When I phoned them at 9am NY time they were taken by surprise but they got on to it and had emailed me it's solved by 10.30. Now, if E is removed tomorrow they get full marks.

rich

[lmcat]

The company has not missed any deadline. As a Foreign Private Issuer (FPI), China Ceramics has until the end of June to file a 20F. It appears OTCBB has made a mistake by adding the “E”. Legal has called them to rectify the situation. According to the OTCBB, the stock and warrants will trade as CCLTE and CCLWE today and will be back to normal tomorrow.

Please let me know if you have any questions.

Regards,

Bryan C. Blake
Market Intelligence Executive
CCG INVESTOR RELATIONS
1325 Avenue of the Americas, Suite 2800
New York, NY 10019
Tel: [phone]
Mobile: [phone]
[e-mail]
www.ccgir.com | www.ccgasiair.com

Don't miss the China Rising 2010 investment conference on May 17th at the Grand Hyatt in NYC!

[viking86]

good catch, Rich. Just got 100 shares of CCLTE today.

[GorillaGorilla]

CCLWE - looks sorted - good IR company!

-----------------------------------------

Rich,

The company has not missed any deadline. As a Foreign Private Issuer (FPI), China Ceramics has until the end of June to file a 20F. It appears OTCBB has made a mistake by adding the “E”. Legal is calling them now to rectify the situation. Hopefully everything will be back to normal shortly.



Please let me know if you have any questions.


Regards,


Bryan C. Blake

-------------------------------

The stock and warrants will trade as CCLWE and CCLTE today according to the OTCBB. Back to normal tomorrow.

[redman_2014]

As of Dec/09 Grant Thornton looks to be the auditor. Here is an excerpt from a Feb 8th/2010 filing.


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Director
Success Winner Limited

We have audited the accompanying combined balance sheets of Success Winner Limited and its subsidiaries as of December 31, 2006, 2007 and 2008, and the related combined statements of income, changes in equity and cash flows for each of the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the combined financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of Success Winner Limited and its subsidiaries as of December 31, 2006, 2007 and 2008, and the results of its operations and cash flows for each of the years then ended in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

/s/ GRANT THORNTON

Shanghai, PRC
December 4, 2009


-Adam

[redman_2014]

If memory serves me correctly I believe Grant Thornton is their auditor.


-Adam

[stocktrader2222]

Agreed, and you don't hire CCG and then think a 0 volume day on earnings is acceptable...very disappointing.

[GorillaGorilla]

So far I would say it feels "silly" more than suspicious.

They've done presentations, shown unaudited returns and done a CC. If there was any doubt they could have asked for a 15 day grace period, they didn't.

I don't know who is auditing the accounts? It could all rely upon Chinese in which case nothing until tomorrow, sigh.

rich

[kuwlness]

They were a big board stock not too long ago and didnt seem to mind much about being de-listed.

Time for management to step up to the plate and get this sucker back on the big-boards

[stocktrader2222]

Wow that's definitely concerning, these guys aren't pink sheet caliber, they need to step their game up, what the heck is CCG investor relations doing for them? Arent they supposed to advise them on this sort of thing along with bring exposure..this is silly

[GorillaGorilla]

They did not put an NT form in. That means you have 5 days grace to get 10-K filing in. This they haven't done - so we get E airfixed to the name.

I have asked IR to get onto it. We'll see.

rich

[stocktrader2222]

Making us more hidden even more than we were before, what's up with all this symbol changing...exhausting

[lmcat]

The symbol has been changed to CCLTE.
lmcat

[systrader]

Didn't get the ask at the close.

For some reason, my bid at the $ 8.75 ask wasn't fill so I'll try to fill in in the morning.

[systrader]

I put my money where my mouth is, twice.

Just bought 100 at $ 8.75 in my wife's IRA.

Now bidding 100 at $ 8.70 in my account. If that doesn't fill, I'll hit the ask at the close.

That will be 2 extra shareholders from my end.

[morokoy]

Also got 100 CFQCF - so did my bit for both.

[morokoy]

Ditto, my buy at 15:19 p.m.

[chrich12]

Added some commons to my warrants, so you've got at least 1 more today.

[viking86]

I think it's an excellent idea. It's just the # of bodies that count I guess.

[systrader]

If increase shareholders is needed for an uplisting, why don't we all just buy 100 shares each. We probably could get at least 50 extra shareholders by doing this.

I'm not sure how to handle the float part of the problem though.

[systrader]

HTJ, I probably bought your warrants today. I should have bought them at $ 1, but I've been waiting for the 10-K to commit to CCLTF. My concern was that there is going to be an eventual slowdown in real estate construction all over China by the time CCLTF finally began to gain some coverage in the marketplace, so I've had reservations about dipping my toe in the water.

However, the numbers from the 10-K made me a believer that it the risk may not be as large as I thought. I like the fact that they have a backlog and that their margins are increasing.

Problem still remains that CCLTF needs to hasten their exposure to the general marketplace and institutional investors. I can't see this happening until this goes to the NASDAQ because most institutions don't look at OTCBB stocks at all.

I can see holding these warrants for another 6 to 12 months before we see any price action on them. Hopefully the NASDAQ uplisting will occur sooner than that.

[Drexion2004]

How can I expect the common to get any volume when 95% of my position in this company is in the warrants? Given how undervalued it is, I just do not see any reason to invest in the common versus the warrants. The upside is simply not as large.

On the bright side, the warrants got 290k volume or $464k dollars traded. So there was definitely buying interest.

I probably bought your shares today, or maybe Glen Bradford got them...hehe...

-Fernando

[inapdave]

To have zero volume the day before and the day of an earnings release is just bizarre. It was good to see the volume in the warrants, but geez...ZERO volume in the common for two straight days? That was enough for me to sell half of my warrants today.

[stocktrader2222]

good volume with the warrants, but 0 on common with earnings release...looks like ill be stuck in the warrants for a while, this wont be discovered any time soon it looks like

[edjohnson]

So far non-event, as I thought it would be... Listing on the higher exchange could put it on the map. Lots of moves on the BoD.

[redman_2014]

Updated projections for CCLWF using actual 2009 numbers

Share price: $9.00
Shares o/s: 8.9M
Warrant price: $1.46
Warrant strike price: $7.50
Warrants o/s: 15.55M(will raise $116.5M when converted)

The projections include the cash and use 25.7M o/s(includes the warrants) and are based on announced 2009 numbers:

2009 Net Income = $26.20M($1.02 eps using 25.7M o/s)
$9.00(share price) - $4.57(cash) = $4.43 adjusted share price.
$4.43/$1.02(Expected 2010 eps) = PE of 4.34

Projections(using 2009 eps of $1.02):

PE of 5 = $9.67(intrinsic value of warrants = $2.17)
PE of 6 = $10.69(intrinsic value of warrants = $3.19)
PE of 7 = $11.71(intrinsic value of warrants = $4.21)
PE of 8 = $12.73(intrinsic value of warrants = $5.23)
PE of 9.5 = $14.25(intrinsic value of warrants = $6.75)

Warrant potential:

Share price of $11 = $3.50(140% upside)
Share price of $12 = $4.50(208% upside)
Share price of $13 = $5.50(277% upside)
Share price of $14.25 = $6.75(362% upside)


Summary:
Using the cash method for the warrants it only requires a trailing PE of 9.5(which brings the o/s to 25.7M) to make it to the $14.25 redemption price for the warrants. It currently has a PE of 4.34 on a trailing 2009 basis.


-Adam

[stocktrader2222]

The sad part is I don't think we will be discovered on that PR, it's not that clear cut...and the spread on this stock is terrible. Would have been nice if they spoke about nasdaq uplisting etc.

[viking86]

2009 EPS: I dont know why everybody keeps using a different non- GAAP eps than the one used by the Company today. I know this all comes from using different FD b/c of the warrants (I was using 8.5M too for 2009)but officially, the Fully Diluted share count as of End 2009 is 6.462M shares. So the "official" non GAAP eps for any future comparative purposes should be = $4.06, not 2.94 or 3.46.

No?

[redman_2014]

You are right, but the market will probably use $3.46 eps as their number when doing projections.

I personally will use $2.94 eps(8.9M o/s) but that's just me.

No matter which way you cut it China Ceramics is extremely undervalued at present levels :)

-Adam

[Traderfan]

Redman, I already commented about it on the main board but shouldn't we exclude the one time merger costs in our PE and EPS math? I mean these costs won't come in 2010 so for 2010 the numbers look even better.

[redman_2014]

2009 EPS $2.94(using current 8.9 O/S)

Even using their current share count of 8.9M it still looks very cheap at 3.1x trailing PE, especially when they are projecting 30% growth going forward.


-Adam

[Traderfan]

The good: order backlog is up 36% YOY. That helps alleviate the concern over whether there are actually buyers for all the tile that they can make at their new facility.


Well we already knew this as it was written in the march presentation. That's definitely a positive and important to show the street that they have the demand for more production lines.

[bUrRpPPP!]

CCLTF $3.46 eps for a $9 stock....crazy cheap!

[Koufax]

The good: order backlog is up 36% YOY. That helps alleviate the concern over whether there are actually buyers for all the tile that they can make at their new facility.

More good: One of the new directors is a retired PWC partner. That adds credibility.

The bad: The other new director is a wet-behind-the-ears lawyer. It looks weak.

[Traderfan]

They are ready to go for Nasdaq if it wasn't for the tiny float and the shareholders count.

[redman_2014]

Nothing that really stands out so far. I really like that fact that gross margins are expanding every quarter and were sitting at 36% as of Q4/09, and that the three production lines at the new facility are already being used at full capacity.

They also have appointed two new directors to the board effective April 1st/2010.


-Adam

[GorillaGorilla]

So the adusted net income was higher than expected (+13%) at $26M rather than $23. They are producing 3 lines from the aquired plant and their expansion plans are on track.

Anything bad?

rich

[redman_2014]

CCLTF/CCLWF - $3.46 EPS 2009 ($26.2M Net Income)

Net revenue was (US$ 128.7 million), an increase of 13.3% from 2008.

Gross profit was (US$ 43.5 million), an increase of 22.3% from 2008.

Gross profit margin was 33.8%, compared to 31.3% in 2008. Gross margin was 36% in Q4/2009.

Non-GAAP profit before tax excluding the merger costs incurred in Success Winner Limited's reverse recapitalization was RMB 238.6 million (US$ 34.9 million), up 26.2% from RMB 189.1 million in 2008;

Non-GAAP net profit excluding the merger costs incurred in Success Winner Limited's reverse recapitalization was RMB 179.3 million (US$ 26.2 million), up 8.6% from RMB 165.0 million in 2008

Earnings per fully diluted share were RMB 23.65 (US$ 3.46) compared to RMB 28.73 (US$ 4.13) in 2008.

Tiles: 'the average selling price per square meter increased by 5.5% in the fourth quarter of 2009 compared with the same period in 2008.'

Cash and bank balances(as of Dec 31st/2009)were RMB 150.1 million (US$ 22.0 million), compared with RMB 162.3 million (US$ 23.7 million) as of September 30, 2009. The decrease in cash and bank balances was a compound result of RMB 81.4 million (US$ 11.9 million) of cash provided by the reverse recapitalization transaction with China Holdings Acquisition Corp., offset by the partial payment of RMB 145 million (US$ 21.2 million) in the fourth quarter of 2009 for the acquisition of the Gaoan plant.

Bank borrowings have gone down from RMB 34.5 million (US$ 5.0 million) as of September 30, 2009 to RMB 26.5 million (US$ 3.9 million) as of December 31, 2009 due to repayments in the fourth quarter of 2009.

Business Outlook: China Ceramics' nine production lines at the Jinjiang facility and three production lines at the Gaoan facility are all running at full capacity.The current annual production capacity at the Jinjiang facility is 28 million square meters and 10 million square meters at the Gaoan facility. The annual production capacity at the Gaoan facility is expected to reach 42 million square meters by the end of 2011. Mr. Huang added, "Our immediate focus for 2010 is increasing our production capacity to meet growing market demand for our products. We also expect to continue to benefit from the central government's RMB4 trillion stimulus plan and China's continued urbanization." The Company's backlog of orders for delivery in the first quarter was at approximately RMB 242.2 million (US$ 35.5 million), representing a year-over-year revenue growth rate of 35.9% compared to the first quarter of 2009. The expected sales volume is 9.1 million square meters, which would represent a 30.1% year-over-year growth in sales volume from 7.0 million square meters sold in the comparable period of 2009.

"We are pleased to report another strong quarter that exceeds our revenue and net income guidance for the full year," said Mr. Jiadong Huang, Chief Executive Officer of China Ceramics. "Our rapid growth was driven by our ability to increase our production volume to meet continued robust market demand. The majority of our revenues come from the domestic market in China, which we believe will continue to exhibit growth in the quarters ahead."


http://xsltm1.finance.vip.sp2.yahoo.com/news/China-Ceramics-Reports-prnews-3608578805.html?x=0

-Adam

[inapdave]

This company is about as under the radar as you can get. There is no analyst coverage and it had ZERO volume the trading day before earnings that should come in at $2.66/share. I think we could see a big move up on Monday.

[inapdave]

If they report $2.66 shares the headline alone could be worth a quick $2-$3 move considering how thin CCLTF trades. I have a GTC order to sell my warrants at a much higher price. We'll see how the market reacts on Monday.

[bUrRpPPP!]

Brilliant...such insight...I'm shocked you have zero membermarks LMAO!

[edjohnson]

That happens with the stocks that had a massive run-up. This one is barely even known to many, so I don't expect a sell-off on the earnings release. Most likely non-event though, since earnings are pretty much expected, unless they surprise big to the upside. What I'm waiting for is the eventual move back to higher exchange. They should have enough shareholders within next 3-4 months timeframe.

[ihtblr]

This one might sell off when the results are out..
New trend..

[bUrRpPPP!]

China Ceramics Co., Ltd. Schedules Conference Call to Discuss Fourth Quarter 2009 and Year End Results

PR Newswire



JINJIANG, Fujian, China, March 29 /PRNewswire-Asia-FirstCall/ --

China

Ceramics Co., Ltd. (OTC Bulletin Board: CCLTF, CCLWF, CCLUF) ("China Ceramics"

or the "Company"), a leading manufacturer of ceramic tiles, which are used for

exterior siding, interior flooring, and design in residential and commercial

buildings, today announced that it will conduct a conference call at 8:00 a.m.

eastern time on Monday, April 5, 2010 to discuss the fourth quarter 2009 and

year-end financial results.

To participate in the live conference call, please dial the following

number five to ten minutes prior to the scheduled conference call time: +1

[phone]. International callers should dial [phone]. When

prompted by the operator, mention conference pass code 64941517.

If you are unable to participate in the call at this time, a replay will

be available for 14 days starting on Monday, April 5, 2010, at 10:00 a.m.

eastern time. To access the replay, please dial [phone],

international callers dial [phone], and enter the pass code 64941517.

About China Ceramics Co., LTD

China Ceramics Co., Ltd., formerly China Holdings Acquisition Corp., is a

leading manufacturer of ceramic tiles in China. The company's ceramic tiles

are used for exterior siding, interior flooring, and design in residential and

commercial buildings. China Ceramics' products, sold under the Hengda or "HD"

brand, are available in over 2000 styles, colors and sizes combinations and

are distributed through a network of exclusive distributors or directly to

large property developers. For more information, please visit

http://www.hengdatile.com .

For more information, please contact:

China Ceramics Co., Ltd.

Edmund Hen, Chief Financial Officer

Email: [e-mail]

CCG Investor Relations Inc.

Mr. Ed Job, CFA - Account Manager

Phone: [phone]

Email: [e-mail]

Mr. Bryan Blake, Sr. MI Executive

Phone: [phone]

Email: [e-mail]

Web: http://www.ccgirasia.com

SOURCE China Ceramics Co., Ltd.

[redman_2014]

Sorry everyone for my error regarding the March 29th release date. I was obviously dilusional when I thought I read that somewhere. Going crazy at 30, not a good sign :(


-Adam

[edjohnson]

Earnings will be released on April 5th.